Tax Season Deadline Delayed By 90 Days

March 20, 2020

Treasury Secretary Steven Mnuchin has announced that taxpayers will get a three-month reprieve to file their 2019 income tax returns.  Also, as part of the federal government’s response to the coronavirus, filers will also get 90 days to pay income taxes due on up to $1 million in tax owed. The reprieve on this amount would cover many pass-through entities and small businesses.

Secretary Mnuchin also announced that corporate filers would get the same length of time to pay amounts due on up to $10 million in taxes owed. Taxpayers will not be subject to interest and penalties during the three-month deferral period. The deferral period will push the tax due date for 2019 returns from the original April 15 due date to a July 15 due date.

The delay also includes first quarter, 2020 estimate payments for individuals. These payments are now due on or before July 15, 2020. This estimate payment delay does not apply to corporations.

Even though there is a three-month deferral for federal tax returns, you are still encouraged to file your return as soon as possible, especially if you are due a refund and need the money.

For now, the IRS is still issuing refunds as normal. For e-filers, refunds are often sent in less than three weeks.  If the IRS is forced to scale back its operations for safety reasons, however, your refund could be delayed.

While the federal government is granting a three-month deferral, you should still check with your state and local officials to see if they are granting a deferral.

If you have any questions, please contact your Riney Hancock CPAs financial advisor.